Do you know what is the most popular methods of credit card debt relief available today? This it is important to cover the pros and cons of both of these options. There is one more option that most people are unaware of that I would like to explain. It is called debt resolution. This is a program that is like debt settlement in many ways. It saves time and money, but it also reduces some of the negative aspects associated with debt settlement. Here The Advantages and Risks of Debt Settlement.
The most common and first option is to simply do nothing at all. Surprisingly enough, most people do this. Maybe you have been doing it, too; however, you must realise that some action is necessary. The majority of people who owe credit card debt are just running on the credit treadmill. The definition of the credit treadmill is spending month after month making only the minimum payment to your credit card accounts and never being able to get ahead due to the high interest.
Financially, this may be one of the most serious of predicaments. Even with a low-interest rate, when you are just paying the minimum amount monthly, you will be in debt for nearly 40 years. It will take you decades to pay this debt back, and you will end up paying more than 5 times the amount you originally borrowed. Many people have an interest rate (APR) in the high 20s-30s. If yours is like that, it will take you a long time to resolve your debts. Of course, you will lose a great deal more money.
Okay, enough said about that option. There is nothing good about being overwhelmed by debt and simply making the minimum payments, now let’s find out what option do we have for Debt Settlement.